Li Auto (NASDAQ:LI) stock rose overnight after the company reported positive results and an increase in electric vehicle (EV) deliveries.

The Chinese company said it earned over $200 million non-GAAP, about 20 cents per share, on revenue of over $2.7 billion. It delivered more than 52,500 cars during the quarter and said it had deliveries of over 25,000 in April.

Like their American counterparts, Chinese EV makers are struggling to scale and survive a shakeout that has made new equity financing hard to obtain. The stock opened May 10 at about $26.20, representing a market cap of over $25 billion.

LI Stock: Breaking Away From the Pack

Li, XPeng (NASDAQ:XPEV) and Nio (NYSE:NIO) have all seemed similar to American investors in the past. The new results may change that view.

This year, Li has broken from the pack. It produced almost twice the number of vehicles as its two rivals did in April, combined. Nio had deliveries of 6,658 cars and Xpeng barely 7,000.

More important, Li not only doubled its revenue in the first quarter, compared to a year ago, but it showed a profit. While it failed to meet the latest analyst estimates on revenue, earnings were far above estimates.

Li hopes to ship 2 million cars in 2025. China is now the world’s second-largest auto producer, with exports up 54%. Costs are falling, and many companies are working to capture the export mid-market abandoned by American companies.

What Happens Next?

Li has been talking of building a plant in Europe since 2021, and rivals like BYD (OTCMKTS:BYDDF) are now doing the same. Other car companies have a stern test ahead of them.

On the date of publication, Dana Blankenhorn held no positions in any companies mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.